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Valero Energy Reports Second Quarter 2024 Results
Source: Business Wire
Reported net income attributable to Valero stockholders of $880 million, or $2.71 per share
Declared a regular quarterly cash dividend on common stock of $1.07 per share on July 18
Returned $1.4 billion to stockholders through dividends and stock buybacks
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $880 million, or $2.71 per share, for the second quarter of 2024, compared to $1.9 billion, or $5.40 per share, for the second quarter of 2023.
Refining
The Refining segment reported operating income of $1.2 billion for the second quarter of 2024, compared to $2.4 billion for the second quarter of 2023. Refining throughput volumes averaged 3.0 million barrels per day in the second quarter of 2024.
“We see continued strength in our U.S. wholesale system with sales exceeding one million barrels per day in the second quarter,” said Lane Riggs, Valero’s Chief Executive Officer and President.
Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $112 million of operating income for the second quarter of 2024, compared to $440 million for the second quarter of 2023. Segment sales volumes averaged 3.5 million gallons per day in the second quarter of 2024, which was 908 thousand gallons per day lower than the second quarter of 2023. Operating income in the second quarter of 2024 was lower than the second quarter of 2023 due to lower sales volumes resulting from planned maintenance activities and lower renewable diesel margin.
Ethanol
The Ethanol segment reported $105 million of operating income for the second quarter of 2024, compared to $127 million for the second quarter of 2023. Ethanol production volumes averaged 4.5 million gallons per day in the second quarter of 2024, which was 31 thousand gallons per day higher than the second quarter of 2023.
Corporate and Other
General and administrative expenses were $203 million in the second quarter of 2024, compared to $209 million in the second quarter of 2023. The effective tax rate for the second quarter of 2024 was 23 percent.
Investing and Financing Activities
Net cash provided by operating activities was $2.5 billion in the second quarter of 2024. Included in this amount was a $789 million favorable change in working capital and $83 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities was $1.6 billion in the second quarter of 2024.
Capital investments totaled $420 million in the second quarter of 2024, of which $329 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD and other variable interest entities, capital investments attributable to Valero were $360 million.
Valero returned $1.4 billion to stockholders in the second quarter of 2024, of which $347 million was paid as dividends and $1.0 billion was for the purchase of approximately 6.6 million shares of common stock, resulting in a payout ratio of 87 percent of adjusted net cash provided by operating activities.
Valero remains committed to a through-cycle minimum annual payout ratio of 40 to 50 percent. Valero defines payout ratio as the sum of dividends paid and the total cost of stock buybacks divided by adjusted net cash provided by operating activities.
On July 18, Valero announced a quarterly cash dividend on common stock of $1.07 per share, payable on September 3, 2024 to holders of record at the close of business on August 1, 2024.
Liquidity and Financial Position
Valero ended the second quarter of 2024 with $8.4 billion of total debt, $2.4 billion of finance lease obligations, and $5.2 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 16 percent as of June 30, 2024.
Strategic Update
The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant is still expected to be operational in the fourth quarter of 2024, with a total cost of $315 million, half of which is attributable to Valero. The project is expected to give the plant the optionality to upgrade approximately 50 percent of its current 470 million gallon renewable diesel annual production capacity to SAF. With the completion of this project, DGD is expected to become one of the largest manufacturers of SAF in the world.
“Our team’s simple strategy of pursuing excellence in operations, return driven discipline on growth projects, and a demonstrated commitment to shareholder returns has underpinned our success and positions us well for the future,” said Riggs.
Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel and Ethanol segments. Please visit investorvalero.com for more information.
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Director – Investor Relations and Finance, 210-345-3331
Gautam Srivastava, Director – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Safe-Harbor Statement
Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “commitment,” “plans,” “forecast, “guidance” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, future market and industry conditions, future operating and financial performance, future production and manufacturing ability and size, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations and financial performance or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations, or that impose profits, windfall or margin taxes or penalties, global geopolitical and other conflicts and tensions, the impact of inflation on margins and costs, economic activity levels, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.
Use of Non-GAAP Financial Information
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Ethanol operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a definition of non-GAAP measures and a reconciliation to their most directly comparable GAAP measures. Note (c) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.
Valero Energy Corporation Declares Regular Cash Dividend on Common Stock
Source: Business Wire
The Board of Directors of Valero Energy Corporation (NYSE: VLO, “Valero”) has declared a regular quarterly cash dividend on common stock of $1.07 per share. The dividend is payable on September 3, 2024 to holders of record at the close of business on August 1, 2024.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240718924170/en/
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Director – Investor Relations and Finance, 210-345-3331
Gautam Srivastava, Director – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Valero Energy Reports First Quarter 2024 Results
Source: Business Wire
Reported net income attributable to Valero stockholders of $1.2 billion, or $3.75 per share
Reported adjusted net income attributable to Valero stockholders of $1.3 billion, or $3.82 per share
Repaid the $167 million outstanding principal balance of its 1.200% Senior Notes that matured on March 15
Declared a regular quarterly cash dividend of $1.07 per share on January 18
Returned $1.4 billion to stockholders through dividends and stock buybacks
Startup of the Diamond Green Diesel Sustainable Aviation Fuel (SAF) project is now expected in the fourth quarter of 2024
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $1.2 billion, or $3.75 per share, for the first quarter of 2024, compared to $3.1 billion, or $8.29 per share, for the first quarter of 2023. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $1.3 billion, or $3.82 per share, compared to $3.1 billion, or $8.27 per share, for the first quarter of 2023.
Refining
The Refining segment reported operating income of $1.7 billion for the first quarter of 2024, compared to $4.1 billion for the first quarter of 2023. Refining throughput volumes averaged 2.8 million barrels per day in the first quarter of 2024.
“We are pleased to report strong financial results for the first quarter despite heavy planned maintenance across our refining system,” said Lane Riggs, Valero’s Chief Executive Officer and President. “Our team’s ability to optimize and maximize throughput while undertaking maintenance activities illustrates the benefits from our long-standing commitment to safe and reliable operations.”
Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $190 million of operating income for the first quarter of 2024, compared to $205 million for the first quarter of 2023. Segment sales volumes averaged 3.7 million gallons per day in the first quarter of 2024, which was 741 thousand gallons per day higher than the first quarter of 2023. The higher sales volumes were due to the impact of additional volumes from the DGD Port Arthur plant, which started up in the fourth quarter of 2022 and was in the process of ramping up production rates in the first quarter of 2023. Operating income in the first quarter of 2024 was lower than the first quarter of 2023 due to lower renewable diesel margin.
Ethanol
The Ethanol segment reported $10 million of operating income for the first quarter of 2024, compared to $39 million for the first quarter of 2023. Adjusted operating income was $39 million for the first quarter of 2024. Ethanol production volumes averaged 4.5 million gallons per day in the first quarter of 2024, which was 283 thousand gallons per day higher than the first quarter of 2023.
Corporate and Other
General and administrative expenses were $258 million in the first quarter of 2024, compared to $244 million in the first quarter of 2023. The effective tax rate for the first quarter of 2024 was 21 percent.
Investing and Financing Activities
Net cash provided by operating activities was $1.8 billion in the first quarter of 2024. Included in this amount was a $160 million unfavorable impact from working capital and $122 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities was $1.9 billion in the first quarter of 2024.
Capital investments totaled $661 million in the first quarter of 2024, of which $563 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD and other variable interest entities, capital investments attributable to Valero were $619 million.
Valero returned $1.4 billion to stockholders in the first quarter of 2024, of which $356 million was paid as dividends and $1.0 billion was for the purchase of approximately 6.6 million shares of common stock, resulting in a payout ratio of 74 percent of adjusted net cash provided by operating activities.
Valero defines payout ratio as the sum of dividends paid and the total cost of stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD’s net cash provided by operating activities, excluding changes in its working capital, attributable to the other joint venture member’s share of DGD.
On January 18, Valero announced an increase of its quarterly cash dividend on common stock from $1.02 per share to $1.07 per share.
Liquidity and Financial Position
Valero repaid the $167 million outstanding principal balance of its 1.200% Senior Notes that matured on March 15, ending the first quarter of 2024 with $8.5 billion of total debt, $2.4 billion of finance lease obligations and $4.9 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 17 percent as of March 31, 2024.
Strategic Update
The SAF project at the DGD Port Arthur plant is progressing ahead of schedule and is now expected to be operational in the fourth quarter of 2024, with a total cost of $315 million, half of which is attributable to Valero. The project is expected to give the plant the optionality to upgrade approximately 50 percent of its current 470 million gallon renewable diesel annual production capacity to SAF. With the completion of this project, DGD is expected to become one of the largest manufacturers of SAF in the world.
“We remain focused on the things that have been a hallmark of our strategy for over a decade – maintaining operating excellence, executing our projects well, discipline around capital investments, and our commitment to shareholder returns,” said Riggs.
Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel and Ethanol segments. Please visit investorvalero.com for more information.
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Director – Investor Relations and Finance, 210-345-3331
Gautam Srivastava, Director – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Safe-Harbor Statement
Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “will,” “plans,” “forecast, “guidance” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, future market and industry conditions, future operating and financial performance, future production and manufacturing ability and size, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations and financial performance or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations, or that impose profits, windfall or margin taxes or penalties, global geopolitical and other conflicts and tensions, the impact of inflation on margins and costs, economic activity levels, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.
Use of Non-GAAP Financial Information
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Ethanol operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a reconciliation of non-GAAP measures to their most directly comparable GAAP measures. Note (c) to the earnings release tables provides reasons for the use of these non-GAAP financial measures
Valero Energy Reports 2023 Fourth Quarter and Full Year Results
Source: Business Wire
Reported net income attributable to Valero stockholders of $1.2 billion, or $3.55 per share, for the fourth quarter and $8.8 billion, or $24.92 per share, for the year
Reported adjusted net income attributable to Valero stockholders of $8.8 billion, or $24.90 per share, for the year
Returned $1.3 billion to stockholders through dividends and stock buybacks in the fourth quarter and over $6.6 billion in the year
Increased quarterly cash dividend on common stock by 5 percent to $1.07 per share on January 18
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $1.2 billion, or $3.55 per share, for the fourth quarter of 2023, compared to $3.1 billion, or $8.15 per share, for the fourth quarter of 2022. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $3.2 billion, or $8.45 per share, for the fourth quarter of 2022.
For 2023, net income attributable to Valero stockholders was $8.8 billion, or $24.92 per share, compared to $11.5 billion, or $29.04 per share, in 2022. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $8.8 billion, or $24.90 per share, in 2023, compared to $11.6 billion, or $29.16 per share, in 2022.
Refining
The Refining segment reported operating income of $1.6 billion for the fourth quarter of 2023, compared to $4.3 billion for the fourth quarter of 2022. Refining throughput volumes averaged 3.0 million barrels per day in the fourth quarter of 2023.
“Our operational achievements in health, safety and environmental, mechanical availability and cost management supported best-ever performance in several areas of our operations and contributed to our second best-ever year in adjusted earnings,” said Lane Riggs, Valero’s Chief Executive Officer and President. “We also delivered on our commitment to return cash to shareholders, invest with discipline, and advance our low-carbon fuels strategy.”
Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $84 million of operating income for the fourth quarter of 2023, compared to $261 million for the fourth quarter of 2022. Segment sales volumes averaged 3.8 million gallons per day in the fourth quarter of 2023, which was 1.3 million gallons per day higher than the fourth quarter of 2022. The higher sales volumes were due to the impact of additional volumes from the DGD Port Arthur plant, which started up in the fourth quarter of 2022. Operating income was lower than the fourth quarter of 2022 due to lower renewable diesel margin in the fourth quarter of 2023.
Ethanol
The Ethanol segment reported $190 million of operating income for the fourth quarter of 2023, compared to $7 million for the fourth quarter of 2022. Adjusted operating income was $205 million for the fourth quarter of 2023, compared to $69 million for the fourth quarter of 2022. Ethanol production volumes averaged 4.5 million gallons per day in the fourth quarter of 2023, which was 448 thousand gallons per day higher than the fourth quarter of 2022. Adjusted operating income was higher than the fourth quarter of 2022 primarily as a result of higher production volumes and lower corn prices in the fourth quarter of 2023.
Corporate and Other
General and administrative expenses were $295 million in the fourth quarter of 2023 and $998 million for the year. The effective tax rate for 2023 was 22 percent.
Investing and Financing Activities
Net cash provided by operating activities was $1.2 billion in the fourth quarter of 2023. Included in this amount was a $631 million unfavorable impact from working capital and $65 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities was $1.8 billion in the fourth quarter of 2023.
Net cash provided by operating activities in 2023 was $9.2 billion. Included in this amount was a $2.3 billion unfavorable impact from working capital and $512 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities in 2023 was $11.0 billion.
Capital investments totaled $540 million in the fourth quarter of 2023, of which $460 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD, capital investments attributable to Valero were $506 million in the fourth quarter of 2023 and $1.8 billion in 2023.
Valero returned $1.3 billion to stockholders in the fourth quarter of 2023, of which $346 million was paid as dividends and $966 million was for the purchase of approximately 7.5 million shares of common stock. In 2023, Valero returned over $6.6 billion to stockholders, or 60 percent of adjusted net cash provided by operating activities, consisting of $5.2 billion in stock buybacks and $1.5 billion in dividends.
Valero defines payout ratio as the sum of dividends paid and the total cost of stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD’s net cash provided by operating activities, excluding changes in its working capital, attributable to the other joint venture member’s share of DGD.
On January 18, Valero announced an increase of its quarterly cash dividend on common stock from $1.02 per share to $1.07 per share.
Liquidity and Financial Position
Valero ended 2023 with $9.2 billion of total debt, $2.3 billion of finance lease obligations and $5.4 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 18 percent as of December 31, 2023.
Strategic Update
The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant remains on schedule with completion expected in the first quarter of 2025 for a total cost of $315 million, with half of that attributable to Valero. The project is expected to give the plant the optionality to upgrade approximately 50 percent of its current 470 million gallon renewable diesel annual production capacity to SAF. With the completion of this project, DGD is expected to become one of the largest manufacturers of SAF in the world.
“Our discipline on growth through return driven investments in our core refining and low-carbon fuels businesses should continue to strengthen our competitive advantage and drive long-term shareholder returns,” said Riggs.
Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel and Ethanol segments. Please visit investorvalero.com for more information.
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Director – Investor Relations and Finance, 210-345-3331
Gautam Srivastava, Director – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Safe-Harbor Statement
Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “will,” “plans,” “forecast,” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, future market and industry conditions, future operating and financial performance, future production and manufacturing ability and size, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations, or that impose profits, windfall or margin taxes or penalties, global geopolitical and other conflicts and tensions, the impact of inflation on margins and costs, economic activity levels, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.
Use of Non-GAAP Financial Information
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Ethanol operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a reconciliation of non-GAAP measures to their most directly comparable GAAP measures. Note (h) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.
Valero Energy Reports Third Quarter 2023 Results
Source: Business Wire
Reported net income attributable to Valero stockholders of $2.6 billion, or $7.49 per share
Returned $2.2 billion to stockholders through dividends and stock buybacks
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $2.6 billion, or $7.49 per share, for the third quarter of 2023, compared to $2.8 billion, or $7.19 per share, for the third quarter of 2022. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $2.8 billion, or $7.14 per share, for the third quarter of 2022.
Refining
The Refining segment reported operating income of $3.4 billion for the third quarter of 2023, compared to $3.8 billion for the third quarter of 2022. Refining throughput volumes averaged 3.0 million barrels per day in the third quarter of 2023.
“Our refineries operated well and achieved 95 percent throughput capacity utilization, which is a testament to our team’s relentless focus on operational excellence,” said Lane Riggs, Valero’s Chief Executive Officer and President. “Product demand remained strong in our U.S. wholesale system, which matched the second quarter record of over 1 million barrels per day of sales volume.”
Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $123 million of operating income for the third quarter of 2023, compared to $212 million for the third quarter of 2022. Segment sales volumes averaged 3.0 million gallons per day in the third quarter of 2023, which was 761 thousand gallons per day higher than the third quarter of 2022. The higher sales volumes were due to the impact of additional volumes from the DGD Port Arthur plant, which started up in the fourth quarter of 2022. Operating income was lower than the third quarter of 2022 primarily due to lower renewable diesel margin in the third quarter of 2023.
Ethanol
The Ethanol segment reported $197 million of operating income for the third quarter of 2023, compared to $1 million for the third quarter of 2022. Ethanol production volumes averaged 4.3 million gallons per day in the third quarter of 2023, which was 831 thousand gallons per day higher than the third quarter of 2022. Operating income was higher than the third quarter of 2022 primarily as a result of higher production volumes and lower corn prices in the third quarter of 2023.
Corporate and Other
General and administrative expenses were $250 million in the third quarter of 2023, compared to $214 million in the third quarter of 2022. The effective tax rate for the third quarter of 2023 was 23 percent.
Investing and Financing Activities
Net cash provided by operating activities was $3.3 billion in the third quarter of 2023. Included in this amount was a $33 million favorable change in working capital and $82 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD. Excluding these items, adjusted net cash provided by operating activities was $3.2 billion in the third quarter of 2023.
Capital investments totaled $394 million in the third quarter of 2023, of which $303 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD, capital investments attributable to Valero were $352 million.
Valero returned $2.2 billion to stockholders in the third quarter of 2023, of which $360 million was paid as dividends and $1.8 billion was for the purchase of approximately 13 million shares of common stock, resulting in a payout ratio of 68 percent of adjusted net cash provided by operating activities.
Valero continues to target an annual payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. Valero defines payout ratio as the sum of dividends paid and the total cost of stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD’s net cash provided by operating activities, excluding changes in its working capital, attributable to the other joint venture member’s share of DGD.
Liquidity and Financial Position
Valero ended the third quarter of 2023 with $9.2 billion of total debt, $2.3 billion of finance lease obligations and $5.8 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 17 percent as of September 30, 2023.
Strategic Update
The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant remains on schedule and is expected to be completed in 2025 and cost $315 million, with half of that attributable to Valero. The project is expected to give the plant the optionality to upgrade approximately 50 percent of its current 470 million gallon renewable diesel annual production capacity to SAF. With the completion of this project, DGD is expected to become one of the largest manufacturers of SAF in the world.
“While there are broader factors that may drive market volatility, we remain focused on things we can control,” said Riggs, “including operating efficiently in a safe, reliable and environmentally responsible manner, maintaining capital discipline by adhering to a minimum return threshold on growth projects, and honoring our commitment to shareholder returns.”
Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, Valero), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (U.S.), Canada, the United Kingdom (U.K.), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel and Ethanol segments. Please visit investorvalero.com for more information.
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Director – Investor Relations and Finance, 210-345-3331
Gautam Srivastava, Director – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Safe-Harbor Statement
Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “will,” “plans,” “forecast,” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, future market and industry conditions, future operating and financial performance, future production and manufacturing ability and size, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations, or that impose profits, windfall or margin taxes or penalties, global geopolitical and other conflicts and tensions, the impact of inflation on margins and costs, economic activity levels, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.
Use of Non-GAAP Financial Information
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Ethanol operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a reconciliation of non-GAAP measures to their most directly comparable GAAP measures. Note (e) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.
Valero Energy Reports Second Quarter 2023 Results
Source: Business Wire
Reported net income attributable to Valero stockholders of $1.9 billion, or $5.40 per share
Returned over $1.3 billion to stockholders through dividends and stock buybacks
Declared a regular quarterly cash dividend on common stock of $1.02 per share
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $1.9 billion, or $5.40 per share, for the second quarter of 2023, compared to $4.7 billion, or $11.57 per share, for the second quarter of 2022. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $4.6 billion, or $11.36 per share, for the second quarter of 2022.
Refining
The Refining segment reported operating income of $2.4 billion for the second quarter of 2023, compared to $6.2 billion for the second quarter of 2022. Adjusted operating income was $6.1 billion for the second quarter of 2022. Refining throughput volumes averaged 3.0 million barrels per day in the second quarter of 2023.
“We are pleased to report solid financial results in the second quarter, underpinned by strong execution across all of our business segments,” said Lane Riggs, Valero’s Chief Executive Officer and President. “Our refineries ran well with throughput capacity utilization at 94 percent and our U.S. wholesale system set a sales record of over 1 million barrels per day in May and June.”
Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel joint venture (DGD), reported $440 million of operating income for the second quarter of 2023, compared to $152 million for the second quarter of 2022. Segment sales volumes averaged 4.4 million gallons per day in the second quarter of 2023, which was 2.2 million gallons per day higher than the second quarter of 2022. The higher sales volumes were due to the impact of additional volumes from the startup of the DGD Port Arthur plant in the fourth quarter of 2022.
Ethanol
The Ethanol segment reported $127 million of operating income for the second quarter of 2023, compared to $101 million for the second quarter of 2022. Adjusted operating income for the second quarter of 2022 was $79 million. Ethanol production volumes averaged 4.4 million gallons per day in the second quarter of 2023, which was 582 thousand gallons per day higher than the second quarter of 2022.
Corporate and Other
General and administrative expenses were $209 million in the second quarter of 2023, compared to $233 million in the second quarter of 2022. The effective tax rate for the second quarter of 2023 was 22 percent.
Investing and Financing Activities
Net cash provided by operating activities was $1.5 billion in the second quarter of 2023. Included in this amount was a $1.2 billion unfavorable change in working capital and $242 million of adjusted net cash provided by operating activities associated with the other joint venture member’s share of DGD, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash provided by operating activities was $2.5 billion in the second quarter of 2023.
Capital investments totaled $458 million in the second quarter of 2023, of which $382 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD, capital investments attributable to Valero were $433 million.
Valero returned over $1.3 billion to stockholders in the second quarter of 2023, of which $367 million was paid as dividends and $951 million was for the purchase of approximately 8.4 million shares of common stock, resulting in a payout ratio of 53 percent of adjusted net cash provided by operating activities.
Valero continues to target an annual payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. Valero defines payout ratio as the sum of dividends paid and the total cost of stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD’s net cash provided by operating activities, excluding changes in its working capital, attributable to the other joint venture member’s share of DGD.
On July 20, Valero announced a quarterly cash dividend on common stock of $1.02 per share, payable on September 5, 2023 to holders of record at the close of business on August 3, 2023.
Liquidity and Financial Position
Valero ended the second quarter of 2023 with $9.0 billion of total debt, $2.3 billion of finance lease obligations and $5.1 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 18 percent as of June 30, 2023.
Strategic Update
The Port Arthur Coker project, which successfully commenced operations in April, is operating well and at full capacity. The new coker has increased the refinery’s throughput capacity and enhanced its ability to process incremental volumes of heavy crudes and residual feedstocks, while also improving turnaround efficiency.
The Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant is expected to be completed in 2025 and is estimated to cost $315 million, with half of that attributable to Valero. The project is expected to give the plant the ability to upgrade approximately 50 percent of its current 470 million gallon annual renewable diesel production capacity to SAF, which is expected to make DGD one of the largest manufacturers of SAF in the world.
“We remain committed to the core strategy that has been in place for nearly a decade,” said Riggs. “Our focus on operational excellence, capital discipline and honoring our commitment to shareholder returns has served us well and will continue to anchor our strategy going forward.”
Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (“U.S.”), Canada, the United Kingdom (“U.K.”), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.
Safe-Harbor Statement
Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “will,” “plans,” “forecast,” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing, cost and performance of projects, future market and industry conditions, future operating and financial performance, future production and manufacturing ability and size, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations, or that impose profits, windfall or margin taxes or penalties, the Russia-Ukraine conflict, the impact of inflation on margins and costs, economic activity levels, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.
Use of Non-GAAP Financial Information
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Ethanol operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a reconciliation of non-GAAP measures to their most directly comparable GAAP measures. Note (e) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.
VALERO ENERGY CORPORATION
Valero Energy Reports First Quarter 2023 Results
Source: Business Wire
Reported net income attributable to Valero stockholders of $3.1 billion, or $8.29 per share
Reported adjusted net income attributable to Valero stockholders of $3.1 billion, or $8.27 per share
Reduced debt by $199 million
Returned over $1.8 billion to stockholders through dividends and stock buybacks and declared a regular quarterly cash dividend on common stock of $1.02 per share
Completed the Port Arthur Coker project in March and successfully commenced operations in April
Valero’s Diamond Green Diesel (DGD) joint venture approved a Sustainable Aviation Fuel (SAF) project at the DGD Port Arthur plant
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $3.1 billion, or $8.29 per share, for the first quarter of 2023, compared to $905 million, or $2.21 per share, for the first quarter of 2022. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $3.1 billion, or $8.27 per share, for the first quarter of 2023, compared to $944 million, or $2.31 per share, for the first quarter of 2022.
Refining
The Refining segment reported operating income of $4.1 billion for the first quarter of 2023, compared to $1.5 billion for the first quarter of 2022. Refining throughput volumes averaged 2.9 million barrels per day in the first quarter of 2023.
“Our refineries operated at a 93 percent capacity utilization rate in the first quarter, despite planned maintenance at several of our facilities, illustrating the benefits from our long-standing commitment to operational excellence,” said Joe Gorder, Valero’s Chairman and Chief Executive Officer.
Renewable Diesel
The Renewable Diesel segment, which consists of the DGD joint venture, reported $205 million of operating income for the first quarter of 2023, compared to $149 million for the first quarter of 2022. Segment sales volumes averaged 3.0 million gallons per day in the first quarter of 2023, which was 1.3 million gallons per day higher than the first quarter of 2022. The higher sales volumes were due to the impact of additional volumes from the startup of the DGD Port Arthur plant in the fourth quarter of 2022.
Ethanol
The Ethanol segment reported $39 million of operating income for the first quarter of 2023, compared to $1 million for the first quarter of 2022. Ethanol production volumes averaged 4.2 million gallons per day in the first quarter of 2023, which was 138 thousand gallons per day higher than the first quarter of 2022.
Corporate and Other
General and administrative expenses were $244 million in the first quarter of 2023, compared to $205 million in the first quarter of 2022. The effective tax rate for the first quarter of 2023 was 22 percent.
Investing and Financing Activities
Net cash provided by operating activities was $3.2 billion in the first quarter of 2023. Included in this amount was a $534 million unfavorable change in working capital and $123 million of net cash provided by operating activities associated with the other joint venture member’s share of DGD, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash provided by operating activities was $3.6 billion in the first quarter of 2023.
Capital investments totaled $524 million in the first quarter of 2023, of which $341 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD, capital investments attributable to Valero were $467 million.
Valero returned over $1.8 billion to stockholders in the first quarter of 2023, of which $379 million was paid as dividends and $1.5 billion was for the purchase of approximately 11.0 million shares of common stock, resulting in a payout ratio of 52 percent of adjusted net cash provided by operating activities.
Valero continues to target an annual payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. Valero defines payout ratio as the sum of dividends and stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD’s net cash provided by operating activities, excluding changes in its working capital, attributable to the other joint venture member’s share of DGD.
On January 31, Valero announced an increase of its quarterly cash dividend on common stock from $0.98 per share to $1.02 per share.
Liquidity and Financial Position
Valero further reduced its debt by $199 million, ending the first quarter of 2023 with $9.0 billion of total debt, $2.4 billion of finance lease obligations and $5.5 billion of cash and cash equivalents. The debt to capitalization ratio, net of cash and cash equivalents, was 18 percent as of March 31, 2023.
Strategic Update
The Port Arthur Coker project was completed in March and successfully commenced operations in April. The project is expected to increase Port Arthur refinery’s throughput capacity and enhance its ability to process incremental volumes of sour crude oils and residual feedstocks, while also improving turnaround efficiency.
In January, Valero’s DGD joint venture approved a SAF project at the DGD Port Arthur plant, which will give the plant the ability to upgrade approximately 50 percent of its current 470 million gallon annual renewable diesel production capacity to SAF. The project is expected to be completed in 2025 and is estimated to cost $315 million, with half of that attributable to Valero. With the completion of this project, DGD is expected to be one of the largest manufacturers of SAF in the world.
BlackRock and Navigator’s carbon sequestration project is progressing and they are expecting to begin startup activities in late 2024. Valero expects to be the anchor shipper with eight of its ethanol plants connected to this system, which should allow it to produce a lower carbon intensity ethanol product and significantly improve the margin profile and competitive positioning of its ethanol business.
“Our team continues to successfully execute a strategy that enables us to meet the challenge of supplying the world’s need for reliable and affordable energy in an environmentally responsible manner,” said Gorder. “The tenets of our strategy – pursuing excellence in operations, deploying capital with an uncompromising focus on returns, and honoring our commitment to stockholders – have been in place for nearly a decade and continue to position us well for the future.”
Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (“U.S.”), Canada, the United Kingdom (“U.K.”), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a combined production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Director – Investor Relations, 210-345-3331
Gautam Srivastava, Senior Manager – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Safe-Harbor Statement
Statements contained in this release and the accompanying earnings release tables, or made during the conference call, that state Valero’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “will,” “plans,” “forecast,” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying earnings release tables include, and those made on the conference call may include, statements relating to Valero’s low-carbon fuels strategy, expected timing of completion, cost and performance of projects, future market and industry conditions, future operating and financial performance, future production and manufacturing ability and size, and management of future risks, among other matters. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to current or contemplated legal, political or regulatory developments that are adverse to or restrict refining and marketing operations, or that impose profits, windfall or margin taxes or penalties, the Russia-Ukraine conflict, the impact of inflation on margins and costs, economic activity levels, and the adverse effects the foregoing may have on Valero’s business plan, strategy, operations and financial performance. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.
Valero Energy Reports 2022 Fourth Quarter and Full Year Results
Source: Business Wire
Reported net income attributable to Valero stockholders of $3.1 billion, or $8.15 per share, for the fourth quarter and $11.5 billion, or $29.04 per share, for the year
Reported adjusted net income attributable to Valero stockholders of $3.2 billion, or $8.45 per share, for the fourth quarter and $11.6 billion, or $29.16 per share, for the year
Reduced debt by $2.7 billion in 2022, bringing Valero’s aggregate debt reduction since the second half of 2021 to $4.0 billion
Successfully commenced operations of the new DGD Port Arthur plant in the fourth quarter
Valero Energy Corporation (NYSE: VLO, “Valero”) today reported net income attributable to Valero stockholders of $3.1 billion, or $8.15 per share, for the fourth quarter of 2022, compared to $1.0 billion, or $2.46 per share, for the fourth quarter of 2021. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $3.2 billion, or $8.45 per share, for the fourth quarter of 2022, compared to $988 million, or $2.41 per share, for the fourth quarter of 2021.
For 2022, net income attributable to Valero stockholders was $11.5 billion, or $29.04 per share, compared to $930 million, or $2.27 per share, in 2021. Excluding the adjustments shown in the accompanying earnings release tables, adjusted net income attributable to Valero stockholders was $11.6 billion, or $29.16 per share, in 2022, compared to $1.2 billion, or $2.81 per share, in 2021.
Refining
The Refining segment reported operating income of $4.3 billion for the fourth quarter of 2022, compared to $1.3 billion for the fourth quarter of 2021. Adjusted operating income for the fourth quarter of 2022 was $4.4 billion, compared to $1.1 billion for the fourth quarter of 2021. Refining throughput volumes averaged 3.0 million barrels per day in the fourth quarter of 2022.
“Our refineries operated at a 97 percent capacity utilization rate in the fourth quarter, which is the highest utilization rate for our system since 2018,” said Joe Gorder, Valero’s Chairman and Chief Executive Officer, “I am also proud to report that 2022 was Valero’s best year ever for combined employee and contractor safety, which is a testament to our long-standing commitment to safe, reliable and environmentally responsible operations.”
Renewable Diesel
The Renewable Diesel segment, which consists of the Diamond Green Diesel (DGD) joint venture, reported $261 million of operating income for the fourth quarter of 2022, compared to $150 million for the fourth quarter of 2021. Segment sales volumes averaged 2.4 million gallons per day in the fourth quarter of 2022, which was 851 thousand gallons per day higher than the fourth quarter of 2021. The higher sales volumes were due to the impact of additional volumes from the DGD St. Charles plant expansion and the fourth quarter 2022 startup of the DGD Port Arthur plant.
Ethanol
The Ethanol segment reported $7 million of operating income for the fourth quarter of 2022, compared to $474 million for the fourth quarter of 2021. Adjusted operating income for the fourth quarter of 2022 was $69 million, compared to $475 million for the fourth quarter of 2021. Ethanol production volumes averaged 4.1 million gallons per day in the fourth quarter of 2022, which was 340 thousand gallons per day lower than the fourth quarter of 2021. The higher operating income in the fourth quarter of 2021 was primarily attributed to high ethanol prices due to strong demand and low inventories.
Corporate and Other
General and administrative expenses were $282 million in the fourth quarter of 2022, compared to $286 million in the fourth quarter of 2021. General and administrative expenses were $934 million for the year. The effective tax rate for 2022 was 22 percent.
Investing and Financing Activities
Net cash provided by operating activities was $4.1 billion in the fourth quarter of 2022. Included in this amount was a $9 million unfavorable change in working capital and $142 million of net cash provided by operating activities associated with the other joint venture member’s share of DGD, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash provided by operating activities was $4.0 billion in the fourth quarter of 2022.
Net cash provided by operating activities in 2022 was $12.6 billion. Included in this amount was a $1.6 billion unfavorable impact from working capital and $436 million of net cash provided by operating activities associated with the other joint venture member’s share of DGD, excluding changes in DGD’s working capital. Excluding these items, adjusted net cash provided by operating activities in 2022 was $13.8 billion.
Capital investments totaled $640 million in the fourth quarter of 2022, of which $349 million was for sustaining the business, including costs for turnarounds, catalysts and regulatory compliance. Excluding capital investments attributable to the other joint venture member’s share of DGD and those related to other variable interest entities, capital investments attributable to Valero were $538 million in the fourth quarter of 2022 and $2.3 billion in 2022, which was higher than the annual guidance primarily due to spend timing on the Port Arthur Coker project and the accelerated completion of the DGD Port Arthur plant.
Valero returned 45 percent of adjusted net cash provided by operating activities to stockholders in 2022.
Valero continues to target a long-term total payout ratio between 40 and 50 percent of adjusted net cash provided by operating activities. Valero defines total payout ratio as the sum of dividends and stock buybacks divided by net cash provided by operating activities adjusted for changes in working capital and DGD’s net cash provided by operating activities, excluding changes in its working capital, attributable to the other joint venture member’s share of DGD.
Valero further reduced its debt by $442 million in the fourth quarter. This reduction, combined with a series of debt reduction and refinancing transactions completed since the second half of 2021, have collectively reduced Valero’s debt by over $4.0 billion.
Liquidity and Financial Position
Valero ended 2022 with $9.2 billion of total debt, $2.4 billion of finance lease obligations and $4.9 billion of cash and cash equivalents, compared to $13.0 billion of total debt, $1.6 billion of finance lease obligations and $2.3 billion of cash and cash equivalents at the end of the first quarter of 2021. The debt to capitalization ratio, net of cash and cash equivalents, was approximately 21 percent as of December 31, 2022, down from the pandemic high of 40 percent as of March 31, 2021.
Strategic Update
The DGD project adjacent to the Port Arthur refinery (DGD Port Arthur plant), which has a production capacity of 470 million gallons per year of renewable diesel and 20 million gallons per year of renewable naphtha, was commissioned and started up in the fourth quarter. The project was completed under budget and ahead of the original schedule. Total annual DGD production capacity is now approximately 1.2 billion gallons of renewable diesel and 50 million gallons of renewable naphtha.
Refinery optimization projects that are expected to reduce costs and improve margin capture are progressing on schedule. The Port Arthur Coker project is expected to be completed in the second quarter of 2023 and to increase the refinery’s throughput capacity, while also improving turnaround efficiency.
BlackRock and Navigator’s carbon sequestration project is still expected to begin startup activities in late 2024. Valero expects to be the anchor shipper with eight of its ethanol plants connected to this system, which is expected to result in the production of a lower carbon intensity ethanol product that should significantly improve the margin profile and competitive positioning of the ethanol business.
“We continue to advance other low-carbon opportunities, such as sustainable aviation fuel, renewable hydrogen, and additional renewable naphtha and carbon sequestration projects,” said Gorder. “Our gated process helps ensure these projects meet our minimum return threshold.”
Conference Call
Valero’s senior management will hold a conference call at 10 a.m. ET today to discuss this earnings release and to provide an update on operations and strategy.
About Valero
Valero Energy Corporation, through its subsidiaries (collectively, “Valero”), is a multinational manufacturer and marketer of petroleum-based and low-carbon liquid transportation fuels and petrochemical products, and it sells its products primarily in the United States (“U.S.”), Canada, the United Kingdom (“U.K.”), Ireland and Latin America. Valero owns 15 petroleum refineries located in the U.S., Canada and the U.K. with a combined throughput capacity of approximately 3.2 million barrels per day. Valero is a joint venture member in Diamond Green Diesel Holdings LLC, which owns two renewable diesel plants located in the U.S. Gulf Coast region with a production capacity of approximately 1.2 billion gallons per year, and Valero owns 12 ethanol plants located in the U.S. Mid-Continent region with a combined production capacity of approximately 1.6 billion gallons per year. Valero manages its operations through its Refining, Renewable Diesel, and Ethanol segments. Please visit investorvalero.com for more information.
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Director – Investor Relations, 210-345-3331
Gautam Srivastava, Senior Manager – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Safe-Harbor Statement
Statements contained in this release and the accompanying tables that state Valero’s or management’s expectations or predictions of the future are forward-looking statements intended to be covered by the safe harbor provisions of the Securities Act of 1933 and the Securities Exchange Act of 1934. The words “believe,” “expect,” “should,” “estimates,” “intend,” “target,” “will,” “plans,” “forecast,” and other similar expressions identify forward-looking statements. Forward-looking statements in this release and the accompanying tables include those relating to Valero’s greenhouse gas emissions targets, expected timing of completion and performance of projects, future market and industry conditions, future operating and financial performance, and management of future risks. It is important to note that actual results could differ materially from those projected in such forward-looking statements based on numerous factors, including those outside of Valero’s control, such as legislative or political changes or developments, market dynamics, cyberattacks, weather events, and other matters affecting Valero’s operations or the demand for Valero’s products. These factors also include, but are not limited to, the uncertainties that remain with respect to the Russia-Ukraine conflict, the impact of inflation on margins and costs, economic activity levels, the COVID-19 pandemic, variants of the COVID-19 virus, governmental and societal responses thereto, and the adverse effects the foregoing may have on Valero’s business or economic conditions generally. For more information concerning these and other factors that could cause actual results to differ from those expressed or forecasted, see Valero’s annual report on Form 10-K, quarterly reports on Form 10-Q, and other reports filed with the Securities and Exchange Commission and available on Valero’s website at www.valero.com.
Use of Non-GAAP Financial Information
This earnings release and the accompanying earnings release tables include references to financial measures that are not defined under U.S. generally accepted accounting principles (GAAP). These non-GAAP measures include adjusted net income attributable to Valero stockholders, adjusted earnings per common share – assuming dilution, Refining margin, Renewable Diesel margin, Ethanol margin, adjusted Refining operating income, adjusted Renewable Diesel operating income, adjusted Ethanol operating income, adjusted net cash provided by operating activities, and capital investments attributable to Valero. These non-GAAP financial measures have been included to help facilitate the comparison of operating results between periods. See the accompanying earnings release tables for a reconciliation of non-GAAP measures to their most directly comparable GAAP measures. Note (h) to the earnings release tables provides reasons for the use of these non-GAAP financial measures.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS
(millions of dollars, except per share amounts)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Statement of income data
Revenues
$
41,746
$
35,903
$
176,383
$
113,977
Cost of sales:
Cost of materials and other (a) (b)
34,811
31,849
150,770
102,714
Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
1,638
1,558
6,389
5,776
Depreciation and amortization expense (c)
622
586
2,428
2,358
Total cost of sales
37,071
33,993
159,587
110,848
Asset impairment loss (d)
61
—
61
—
Other operating expenses
26
18
66
87
General and administrative expenses (excluding
depreciation and amortization expense reflected below) (e)
282
286
934
865
Depreciation and amortization expense
11
12
45
47
Operating income
4,295
1,594
15,690
2,130
Other income (expense), net (f)
92
(163
)
179
16
Interest and debt expense, net of capitalized interest
(137
)
(152
)
(562
)
(603
)
Income before income tax expense
4,250
1,279
15,307
1,543
Income tax expense (g)
1,018
169
3,428
255
Net income
3,232
1,110
11,879
1,288
Less: Net income attributable to noncontrolling interests
119
101
351
358
Net income attributable to Valero Energy Corporation
stockholders
$
3,113
$
1,009
$
11,528
$
930
Earnings per common share
$
8.15
$
2.47
$
29.05
$
2.27
Weighted-average common shares outstanding (in millions)
380
408
395
407
Earnings per common share – assuming dilution
$
8.15
$
2.46
$
29.04
$
2.27
Weighted-average common shares outstanding –
assuming dilution (in millions)
381
408
396
407
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS BY SEGMENT
(millions of dollars)
(unaudited)
Refining
Renewable
Diesel
Ethanol
Corporate
and
Eliminations
Total
Three months ended December 31, 2022
Revenues:
Revenues from external customers
$
39,566
$
1,066
$
1,114
$
—
$
41,746
Intersegment revenues
32
528
233
(793
)
—
Total revenues
39,598
1,594
1,347
(793
)
41,746
Cost of sales:
Cost of materials and other
33,280
1,221
1,095
(785
)
34,811
Operating expenses (excluding depreciation and
amortization expense reflected below)
1,398
77
161
2
1,638
Depreciation and amortization expense
565
35
22
—
622
Total cost of sales
35,243
1,333
1,278
(783
)
37,071
Asset impairment loss (d)
—
—
61
—
61
Other operating expenses
25
—
1
—
26
General and administrative expenses (excluding
depreciation and amortization expense reflected
below)
—
—
—
282
282
Depreciation and amortization expense
—
—
—
11
11
Operating income by segment
$
4,330
$
261
$
7
$
(303
)
$
4,295
Three months ended December 31, 2021
Revenues:
Revenues from external customers
$
33,521
$
684
$
1,698
$
—
$
35,903
Intersegment revenues
7
253
174
(434
)
—
Total revenues
33,528
937
1,872
(434
)
35,903
Cost of sales:
Cost of materials and other (a)
30,342
714
1,224
(431
)
31,849
Operating expenses (excluding depreciation and
amortization expense reflected below)
1,358
48
153
(1
)
1,558
Depreciation and amortization expense
543
23
20
—
586
Total cost of sales
32,243
785
1,397
(432
)
33,993
Other operating expenses
15
2
1
—
18
General and administrative expenses (excluding
depreciation and amortization expense reflected
below)
—
—
—
286
286
Depreciation and amortization expense
—
—
—
12
12
Operating income by segment
$
1,270
$
150
$
474
$
(300
)
$
1,594
See Operating Highlights by Segment.
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
FINANCIAL HIGHLIGHTS BY SEGMENT
(millions of dollars)
(unaudited)
Refining
Renewable
Diesel
Ethanol
Corporate
and
Eliminations
Total
Year ended December 31, 2022
Revenues:
Revenues from external customers
$
168,154
$
3,483
$
4,746
$
—
$
176,383
Intersegment revenues
56
2,018
740
(2,814
)
—
Total revenues
168,210
5,501
5,486
(2,814
)
176,383
Cost of sales:
Cost of materials and other (a)
144,588
4,350
4,628
(2,796
)
150,770
Operating expenses (excluding depreciation and
amortization expense reflected below)
5,509
255
625
—
6,389
Depreciation and amortization expense (c)
2,247
122
59
—
2,428
Total cost of sales
152,344
4,727
5,312
(2,796
)
159,587
Asset impairment loss (d)
—
—
61
—
61
Other operating expenses
63
—
3
—
66
General and administrative expenses (excluding
depreciation and amortization expense reflected
below) (e)
—
—
—
934
934
Depreciation and amortization expense
—
—
—
45
45
Operating income by segment
$
15,803
$
774
$
110
$
(997
)
$
15,690
Year ended December 31, 2021
Revenues:
Revenues from external customers
$
106,947
$
1,874
$
5,156
$
—
$
113,977
Intersegment revenues
14
468
433
(915
)
—
Total revenues
106,961
2,342
5,589
(915
)
113,977
Cost of sales:
Cost of materials and other (a) (b)
97,759
1,438
4,428
(911
)
102,714
Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
5,088
134
556
(2
)
5,776
Depreciation and amortization expense (c)
2,169
58
131
—
2,358
Total cost of sales
105,016
1,630
5,115
(913
)
110,848
Other operating expenses
83
3
1
—
87
General and administrative expenses (excluding
depreciation and amortization expense reflected
below)
—
—
—
865
865
Depreciation and amortization expense
—
—
—
47
47
Operating income by segment
$
1,862
$
709
$
473
$
(914
)
$
2,130
See Operating Highlights by Segment.
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Reconciliation of net income attributable to Valero Energy
Corporation stockholders to adjusted net income
attributable to Valero Energy Corporation stockholders
Net income attributable to Valero Energy Corporation
stockholders
$
3,113
$
1,009
$
11,528
$
930
Adjustments:
Modification of renewable volume obligation (RVO) (a)
—
(220
)
(104
)
(1
)
Income tax expense related to modification of RVO
—
49
23
—
Modification of RVO, net of taxes
—
(171
)
(81
)
(1
)
Gain on sale of ethanol plant (c)
—
—
(23
)
—
Income tax expense related to gain on sale of ethanol plant
—
—
5
—
Gain on sale of ethanol plant, net of taxes
—
—
(18
)
—
Asset impairment loss (d)
61
—
61
—
Income tax benefit related to asset impairment loss
(14
)
—
(14
)
—
Asset impairment loss, net of taxes
47
—
47
—
Environmental reserve adjustment (e)
—
—
20
—
Income tax benefit related to environmental reserve adjustment
—
—
(5
)
—
Environmental reserve adjustment, net of taxes
—
—
15
—
Pension settlement charge (f)
58
—
58
—
Income tax benefit related to pension settlement charge
(13
)
—
(13
)
—
Pension settlement charge, net of taxes
45
—
45
—
Loss (gain) on early redemption and retirement of debt (f)
(38
)
193
(14
)
193
Income tax (benefit) expense related to loss (gain) on early
redemption and retirement of debt
9
(43
)
3
(43
)
Loss (gain) on early redemption and retirement of debt,
net of taxes
(29
)
150
(11
)
150
Foreign withholding tax (g)
51
—
51
—
Change in estimated useful life of ethanol plant (c)
—
—
—
48
Income tax benefit related to the change in estimated useful
life of ethanol plant
—
—
—
(11
)
Change in estimated useful life of ethanol plant,
net of taxes
—
—
—
37
Gain on sale of MVP interest (f)
—
—
—
(62
)
Income tax expense related to gain on sale of MVP interest
—
—
—
14
Gain on sale of MVP interest, net of taxes
—
—
—
(48
)
Diamond Pipeline asset impairment loss (f)
—
—
—
24
Income tax benefit related to Diamond Pipeline asset
impairment loss
—
—
—
(5
)
Diamond Pipeline asset impairment loss, net of taxes
—
—
—
19
Income tax expense related to changes in statutory tax rates (g)
—
—
—
64
Total adjustments
114
(21
)
48
221
Adjusted net income attributable to
Valero Energy Corporation stockholders
$
3,227
$
988
$
11,576
$
1,151
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Reconciliation of earnings per common share –
assuming dilution to adjusted earnings per common
share – assuming dilution
Earnings per common share – assuming dilution
$
8.15
$
2.46
$
29.04
$
2.27
Adjustments:
Modification of RVO (a)
—
(0.42
)
(0.20
)
—
Gain on sale of ethanol plant (c)
—
—
(0.05
)
—
Asset impairment loss (d)
0.13
—
0.12
—
Environmental reserve adjustment (e)
—
—
0.04
—
Pension settlement charge (f)
0.12
—
0.11
—
Loss (gain) on early redemption and retirement of debt (f)
(0.08
)
0.37
(0.03
)
0.37
Foreign withholding tax (g)
0.13
—
0.13
—
Change in estimated useful life of ethanol plant (c)
—
—
—
0.09
Gain on sale of MVP interest (f)
—
—
—
(0.12
)
Diamond Pipeline asset impairment loss (f)
—
—
—
0.04
Income tax expense related to changes in statutory tax rates (g)
—
—
—
0.16
Total adjustments
0.30
(0.05
)
0.12
0.54
Adjusted earnings per common share – assuming dilution
$
8.45
$
2.41
$
29.16
$
2.81
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Reconciliation of operating income by segment to segment
margin, and reconciliation of operating income by segment
to adjusted operating income by segment
Refining segment
Refining operating income
$
4,330
$
1,270
$
15,803
$
1,862
Adjustments:
Modification of RVO (a)
—
(220
)
(104
)
(1
)
Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
1,398
1,358
5,509
5,088
Depreciation and amortization expense
565
543
2,247
2,169
Other operating expenses
25
15
63
83
Refining margin
$
6,318
$
2,966
$
23,518
$
9,201
Refining operating income
$
4,330
$
1,270
$
15,803
$
1,862
Adjustments:
Modification of RVO (a)
—
(220
)
(104
)
(1
)
Other operating expenses
25
15
63
83
Adjusted Refining operating income
$
4,355
$
1,065
$
15,762
$
1,944
Renewable Diesel segment
Renewable Diesel operating income
$
261
$
150
$
774
$
709
Adjustments:
Operating expenses (excluding depreciation and
amortization expense reflected below)
77
48
255
134
Depreciation and amortization expense
35
23
122
58
Other operating expenses
—
2
—
3
Renewable Diesel margin
$
373
$
223
$
1,151
$
904
Renewable Diesel operating income
$
261
$
150
$
774
$
709
Adjustment: Other operating expenses
—
2
—
3
Adjusted Renewable Diesel operating income
$
261
$
152
$
774
$
712
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Reconciliation of operating income by segment to segment
margin, and reconciliation of operating income by segment
to adjusted operating income by segment (continued)
Ethanol segment
Ethanol operating income
$
7
$
474
$
110
$
473
Adjustments:
Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
161
153
625
556
Depreciation and amortization expense (c)
22
20
59
131
Asset impairment loss (d)
61
—
61
—
Other operating expenses
1
1
3
1
Ethanol margin
$
252
$
648
$
858
$
1,161
Ethanol operating income
$
7
$
474
$
110
$
473
Adjustments:
Gain on sale of ethanol plant (c)
—
—
(23
)
—
Asset impairment loss (d)
61
—
61
—
Change in estimated useful life of ethanol plant (c)
—
—
—
48
Other operating expenses
1
1
3
1
Adjusted Ethanol operating income
$
69
$
475
$
151
$
522
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Reconciliation of Refining segment operating income (loss) to
Refining margin (by region), and reconciliation of Refining
segment operating income (loss) to adjusted Refining
segment operating income (loss) (by region) (i)
U.S. Gulf Coast region
Refining operating income
$
2,629
$
843
$
9,096
$
831
Adjustments:
Modification of RVO (a)
—
(158
)
(74
)
(1
)
Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
774
748
3,113
3,027
Depreciation and amortization expense
346
328
1,369
1,326
Other operating expenses
19
12
48
70
Refining margin
$
3,768
$
1,773
$
13,552
$
5,253
Refining operating income
$
2,629
$
843
$
9,096
$
831
Adjustments:
Modification of RVO (a)
—
(158
)
(74
)
(1
)
Other operating expenses
19
12
48
70
Adjusted Refining operating income
$
2,648
$
697
$
9,070
$
900
U.S. Mid-Continent region
Refining operating income
$
551
$
204
$
2,252
$
528
Adjustments:
Modification of RVO (a)
—
(39
)
(19
)
—
Operating expenses (excluding depreciation and
amortization expense reflected below) (b)
191
190
772
713
Depreciation and amortization expense
84
82
335
335
Other operating expenses
1
1
1
11
Refining margin
$
827
$
438
$
3,341
$
1,587
Refining operating income
$
551
$
204
$
2,252
$
528
Adjustments:
Modification of RVO (a)
—
(39
)
(19
)
—
Other operating expenses
1
1
1
11
Adjusted Refining operating income
$
552
$
166
$
2,234
$
539
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RECONCILIATION OF NON-GAAP MEASURES TO MOST COMPARABLE AMOUNTS
REPORTED UNDER U.S. GAAP (h)
(millions of dollars)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Reconciliation of Refining segment operating income (loss) to
Refining margin (by region), and reconciliation of Refining
segment operating income (loss) to adjusted Refining
segment operating income (loss) (by region) (i) (continued)
North Atlantic region
Refining operating income
$
1,091
$
265
$
3,384
$
558
Adjustments:
Operating expenses (excluding depreciation and
amortization expense reflected below)
192
195
816
671
Depreciation and amortization expense
62
68
259
247
Other operating expenses
2
1
11
1
Refining margin
$
1,347
$
529
$
4,470
$
1,477
Refining operating income
$
1,091
$
265
$
3,384
$
558
Adjustments:
Other operating expenses
2
1
11
1
Adjusted Refining operating income
$
1,093
$
266
$
3,395
$
559
U.S. West Coast region
Refining operating income (loss)
$
59
$
(42
)
$
1,071
$
(55
)
Adjustments:
Modification of RVO (a)
—
(23
)
(11
)
—
Operating expenses (excluding depreciation and
amortization expense reflected below)
241
225
808
677
Depreciation and amortization expense
73
65
284
261
Other operating expenses
3
1
3
1
Refining margin
$
376
$
226
$
2,155
$
884
Refining operating income (loss)
$
59
$
(42
)
$
1,071
$
(55
)
Adjustments:
Modification of RVO (a)
—
(23
)
(11
)
—
Other operating expenses
3
1
3
1
Adjusted Refining operating income (loss)
$
62
$
(64
)
$
1,063
$
(54
)
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per barrel amounts)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Throughput volumes (thousand barrels per day)
Feedstocks:
Heavy sour crude oil
343
340
343
338
Medium/light sour crude oil
338
300
413
296
Sweet crude oil
1,578
1,621
1,474
1,448
Residuals
218
241
222
240
Other feedstocks
110
138
114
123
Total feedstocks
2,587
2,640
2,566
2,445
Blendstocks and other
455
393
387
342
Total throughput volumes
3,042
3,033
2,953
2,787
Yields (thousand barrels per day)
Gasolines and blendstocks
1,501
1,533
1,451
1,403
Distillates
1,153
1,126
1,118
1,028
Other products (j)
410
403
409
387
Total yields
3,064
3,062
2,978
2,818
Operating statistics (b) (h) (k)
Refining margin
$
6,318
$
2,966
$
23,518
$
9,201
Adjusted Refining operating income
$
4,355
$
1,065
$
15,762
$
1,944
Throughput volumes (thousand barrels per day)
3,042
3,033
2,953
2,787
Refining margin per barrel of throughput
$
22.58
$
10.63
$
21.82
$
9.04
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
5.00
4.86
5.11
5.00
Depreciation and amortization expense per barrel of
throughput
2.02
1.95
2.09
2.13
Adjusted Refining operating income per barrel of
throughput
$
15.56
$
3.82
$
14.62
$
1.91
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
RENEWABLE DIESEL SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per gallon amounts)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Operating statistics (h) (k)
Renewable Diesel margin
$
373
$
223
$
1,151
$
904
Adjusted Renewable Diesel operating income
$
261
$
152
$
774
$
712
Sales volumes (thousand gallons per day)
2,443
1,592
2,175
1,014
Renewable Diesel margin per gallon of sales
$
1.66
$
1.52
$
1.45
$
2.44
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per gallon of sales
0.34
0.33
0.32
0.36
Depreciation and amortization expense per gallon of sales
0.16
0.15
0.15
0.16
Adjusted Renewable Diesel operating income per gallon of sales
$
1.16
$
1.04
$
0.98
$
1.92
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
ETHANOL SEGMENT OPERATING HIGHLIGHTS
(millions of dollars, except per gallon amounts)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Operating statistics (b) (h) (k)
Ethanol margin
$
252
$
648
$
858
$
1,161
Adjusted Ethanol operating income
$
69
$
475
$
151
$
522
Production volumes (thousand gallons per day)
4,062
4,402
3,866
3,949
Ethanol margin per gallon of production
$
0.67
$
1.60
$
0.61
$
0.81
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per gallon of production
0.43
0.38
0.44
0.39
Depreciation and amortization expense per gallon of production (c)
0.05
0.05
0.04
0.09
Gain on sale of ethanol plant per gallon of production (c)
—
—
0.02
—
Change in estimated useful life of ethanol plant per gallon
of production (c)
—
—
—
(0.03
)
Adjusted Ethanol operating income per gallon of production
$
0.19
$
1.17
$
0.11
$
0.36
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Operating statistics by region (i)
U.S. Gulf Coast region (b) (h) (k)
Refining margin
$
3,768
$
1,773
$
13,552
$
5,253
Adjusted Refining operating income
$
2,648
$
697
$
9,070
$
900
Throughput volumes (thousand barrels per day)
1,806
1,796
1,766
1,673
Refining margin per barrel of throughput
$
22.68
$
10.73
$
21.02
$
8.60
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
4.66
4.53
4.83
4.96
Depreciation and amortization expense per barrel of
throughput
2.09
1.98
2.12
2.16
Adjusted Refining operating income per barrel of
throughput
$
15.93
$
4.22
$
14.07
$
1.48
U.S. Mid-Continent region (b) (h) (k)
Refining margin
$
827
$
438
$
3,341
$
1,587
Adjusted Refining operating income
$
552
$
166
$
2,234
$
539
Throughput volumes (thousand barrels per day)
477
486
447
453
Refining margin per barrel of throughput
$
18.84
$
9.78
$
20.49
$
9.59
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
4.35
4.25
4.74
4.31
Depreciation and amortization expense per barrel of
throughput
1.92
1.84
2.06
2.03
Adjusted Refining operating income per barrel of
throughput
$
12.57
$
3.69
$
13.69
$
3.25
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
REFINING SEGMENT OPERATING HIGHLIGHTS BY REGION
(millions of dollars, except per barrel amounts)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Operating statistics by region (i) (continued)
North Atlantic region (h) (k)
Refining margin
$
1,347
$
529
$
4,470
$
1,477
Adjusted Refining operating income
$
1,093
$
266
$
3,395
$
559
Throughput volumes (thousand barrels per day)
494
492
485
413
Refining margin per barrel of throughput
$
29.66
$
11.69
$
25.25
$
9.81
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
4.23
4.29
4.61
4.46
Depreciation and amortization expense per barrel of
throughput
1.35
1.51
1.46
1.64
Adjusted Refining operating income per barrel of
throughput
$
24.08
$
5.89
$
19.18
$
3.71
U.S. West Coast region (h) (k)
Refining margin
$
376
$
226
$
2,155
$
884
Adjusted Refining operating income (loss)
$
62
$
(64
)
$
1,063
$
(54
)
Throughput volumes (thousand barrels per day)
265
259
255
248
Refining margin per barrel of throughput
$
15.43
$
9.52
$
23.15
$
9.75
Less:
Operating expenses (excluding depreciation and
amortization expense reflected below) per barrel of
throughput
9.87
9.45
8.68
7.46
Depreciation and amortization expense per barrel of
throughput
3.00
2.73
3.05
2.89
Adjusted Refining operating income (loss) per barrel of
throughput
$
2.56
$
(2.66
)
$
11.42
$
(0.60
)
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Refining
Feedstocks (dollars per barrel)
Brent crude oil
$
88.81
$
79.85
$
98.86
$
70.79
Brent less West Texas Intermediate (WTI) crude oil
5.96
2.49
4.43
2.83
Brent less WTI Houston crude oil
4.45
1.55
2.82
1.91
Brent less Dated Brent crude oil
(0.11
)
(0.05
)
(2.22
)
0.03
Brent less Alaska North Slope (ANS) crude oil
0.82
0.03
0.06
0.35
Brent less Argus Sour Crude Index crude oil
9.91
4.83
7.42
3.92
Brent less Maya crude oil
17.21
8.07
11.68
6.48
Brent less Western Canadian Select Houston crude oil
22.51
9.31
15.55
7.40
WTI crude oil
82.85
77.36
94.43
67.97
Natural gas (dollars per million British Thermal Units)
4.46
4.54
5.83
7.85
Products (dollars per barrel)
U.S. Gulf Coast:
Conventional Blendstock of Oxygenate Blending (CBOB)
gasoline less Brent
8.21
13.20
17.26
13.66
Ultra-low-sulfur (ULS) diesel less Brent
52.78
17.68
46.45
13.75
Propylene less Brent
(56.82
)
(18.59
)
(42.73
)
(6.43
)
U.S. Mid-Continent:
CBOB gasoline less WTI
14.92
13.86
23.60
17.36
ULS diesel less WTI
59.53
19.79
51.83
18.70
North Atlantic:
CBOB gasoline less Brent
20.29
17.80
26.96
16.89
ULS diesel less Brent
73.03
20.36
57.01
15.91
U.S. West Coast:
California Reformulated Gasoline Blendstock of
Oxygenate Blending (CARBOB) 87 gasoline less ANS
24.82
27.44
39.10
24.17
California Air Resources Board (CARB) diesel less ANS
54.10
22.44
48.75
17.60
CARBOB 87 gasoline less WTI
29.96
29.90
43.47
26.64
CARB diesel less WTI
59.24
24.90
53.12
20.08
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
AVERAGE MARKET REFERENCE PRICES AND DIFFERENTIALS
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Renewable Diesel
New York Mercantile Exchange ULS diesel
(dollars per gallon)
$
3.55
$
2.39
$
3.54
$
2.07
Biodiesel Renewable Identification Number (RIN)
(dollars per RIN)
1.82
1.49
1.67
1.49
California Low-Carbon Fuel Standard (dollars per metric ton)
65.78
155.24
98.73
177.78
Chicago Board of Trade (CBOT) soybean oil (dollars per
pound)
0.70
0.58
0.71
0.58
Ethanol
CBOT corn (dollars per bushel)
6.69
5.67
6.94
5.80
New York Harbor ethanol (dollars per gallon)
2.48
3.43
2.57
2.49
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
OTHER FINANCIAL DATA
(millions of dollars)
(unaudited)
December 31,
2022
2021
Balance sheet data
Current assets
$
24,133
$
21,165
Cash and cash equivalents included in current assets
4,862
4,122
Inventories included in current assets
6,752
6,265
Current liabilities
17,461
16,851
Valero Energy Corporation stockholders’ equity
23,561
18,430
Total equity
25,468
19,817
Debt and finance lease obligations:
Debt –
Current portion of debt (excluding variable interest entities (VIEs))
$
—
$
300
Debt, less current portion of debt (excluding VIEs)
8,380
10,820
Total debt (excluding VIEs)
8,380
11,120
Current portion of debt attributable to VIEs
861
810
Debt, less current portion of debt attributable to VIEs
—
20
Total debt attributable to VIEs
861
830
Total debt
9,241
11,950
Finance lease obligations –
Current portion of finance lease obligations (excluding VIEs)
184
141
Finance lease obligations, less current portion (excluding VIEs)
1,453
1,502
Total finance lease obligations (excluding VIEs)
1,637
1,643
Current portion of finance lease obligations attributable to VIEs
64
13
Finance lease obligations, less current portion attributable to VIEs
693
264
Total finance lease obligations attributable to VIEs
757
277
Total finance lease obligations
2,394
1,920
Total debt and finance lease obligations
$
11,635
$
13,870
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Reconciliation of net cash provided by operating activities to
adjusted net cash provided by operating activities (h)
Net cash provided by operating activities
$
4,096
$
2,454
$
12,574
$
5,859
Exclude:
Changes in current assets and current liabilities
(9
)
595
(1,626
)
2,225
Diamond Green Diesel LLC’s (DGD) adjusted net cash
provided by operating activities attributable to the other joint
venture member’s ownership interest in DGD
142
82
436
381
Adjusted net cash provided by operating activities
$
3,963
$
1,777
$
13,764
$
3,253
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
EARNINGS RELEASE TABLES
OTHER FINANCIAL DATA
(millions of dollars, except per share amounts)
(unaudited)
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
Reconciliation of capital investments to capital
investments attributable to Valero (h)
Capital expenditures (excluding VIEs)
$
236
$
145
$
788
$
513
Capital expenditures of VIEs:
DGD
171
312
853
1,042
Other VIEs
10
51
40
110
Deferred turnaround and catalyst cost expenditures
(excluding VIEs)
210
243
1,030
787
Deferred turnaround and catalyst cost expenditures
of DGD
13
—
26
6
Investments in nonconsolidated joint ventures
—
1
1
9
Capital investments
640
752
2,738
2,467
Adjustments:
DGD’s capital investments attributable to the other joint
venture member
(92
)
(156
)
(439
)
(524
)
Capital expenditures of other VIEs
(10
)
(51
)
(40
)
(110
)
Capital investments attributable to Valero
$
538
$
545
$
2,259
$
1,833
Dividends per common share
$
0.98
$
0.98
$
3.92
$
3.92
Year Ending
December 31, 2023
Reconciliation of expected total capital investments to
expected capital investments attributable to Valero (h)
Expected total capital investments
$
2,055
Adjustment:
DGD’s capital investments attributable to the other joint
venture member
(55
)
Expected capital investments attributable to Valero
$
2,000
See Notes to Earnings Release Tables.
VALERO ENERGY CORPORATION
NOTES TO EARNINGS RELEASE TABLES
(a)
Under the Renewable Fuel Standard program, the U.S. Environmental Protection Agency (EPA) is required to set annual quotas for the volume of renewable fuels that obligated parties, such as us, must blend into petroleum-based transportation fuels consumed in the U.S. The quotas are used to determine an obligated party’s renewable volume obligation (RVO). The EPA released a final rule on June 3, 2022 that, among other things, modified the volume standards for 2020 and, for the first time, established volume standards for 2021 and 2022.
In 2020, we recognized the cost of the RVO using the 2020 quotas set by the EPA at that time, and in 2021 and the three months ended March 31, 2022, we recognized the cost of the RVO using our estimates of the quotas. As a result of the final rule released by the EPA as noted above, we recognized a benefit of $104 million in June 2022 primarily related to the modification of the 2020 quotas. The impacts to the estimated cost of the RVO recognized by us in 2021 and the three months ended March 31, 2022 were not significant; however, there were impacts in the 2021 quarterly periods as follows: (i) benefit of $80 million for the three months ended March 31, 2021; (ii) benefit of $81 million for the three months ended June 30, 2021; (iii) benefit of $58 million for the three months ended September 30, 2021; and (iv) charge of $220 million related to the three months ended December 31, 2021, resulting in a charge of $1 million for the year ended December 31, 2021.
(b)
In mid-February 2021, many of our refineries and plants were impacted to varying extents by the severe cold, utility disruptions, and higher energy costs arising out of Winter Storm Uri. The higher energy costs resulted from an increase in the prices of natural gas and electricity that significantly exceeded rates that we consider normal, such as the average rates we incurred the month preceding the storm. As a result, our operating income for the year ended December 31, 2021 includes estimated excess energy costs of $579 million ($1.15 per share).
The above-mentioned pre-tax estimated excess energy charge is reflected in our statement of income line items and attributable to our reportable segments for the year ended December 31, 2021 as follows (in millions):
Refining
Renewable
Diesel
Ethanol
Total
Cost of materials and other
$
47
$
—
$
—
$
47
Operating expenses (excluding depreciation
and amortization expense)
478
—
54
532
Total estimated excess energy costs
$
525
$
—
$
54
$
579
The estimated excess energy costs attributable to our Refining segment for the year ended December 31, 2021 are associated with the Refining segment regions as follows (in millions, except per barrel amounts):
U.S.
Gulf Coast
U.S.
Mid-
Continent
Other
Regions
Combined
Refining
Segment
Cost of materials and other
$
45
$
2
$
—
$
47
Operating expenses (excluding depreciation
and amortization expense)
437
38
3
478
Total estimated excess energy costs
$
482
$
40
$
3
$
525
Effect of estimated excess energy costs
on operating statistics (k)
Refining margin per barrel of throughput (h)
$
0.07
$
0.01
n/a
$
0.05
Operating expenses (excluding depreciation
and amortization expense) per barrel of
throughput
0.72
0.23
n/a
0.47
Adjusted Refining operating income per barrel
of throughput (h)
$
0.79
$
0.24
n/a
$
0.52
The estimated excess energy costs attributable to our Ethanol segment for the year ended December 31, 2021 affected that segment’s operating statistics of (i) operating expenses (excluding depreciation and amortization expenses) per gallon of production and (ii) adjusted operating income per gallon of production by $0.04 (see note (h) below).
(c)
Depreciation and amortization expense includes the following:
?
a gain of $23 million in the year ended December 31, 2022 on the sale of our ethanol plant located in Jefferson, Wisconsin (Jefferson ethanol plant); and
?
accelerated depreciation of $48 million in the year ended December 31, 2021 related to a change in the estimated useful life of our Jefferson ethanol plant.
(d)
Our ethanol plant located in Lakota, Iowa (Lakota ethanol plant) is configured to produce USP-grade ethanol, a higher grade ethanol suitable for hand sanitizer blending that has a higher market value than fuel-grade ethanol. During 2022, demand for USP-grade ethanol declined and had a negative impact on the profitability of the plant. As a result, we tested the recoverability of the carrying value of the Lakota ethanol plant and concluded that it was impaired. Therefore, we reduced the carrying value of the plant to its estimated fair value and recognized an asset impairment loss of $61 million in the three months and year ended December 31, 2022.
(e)
General and administrative expenses (excluding depreciation and amortization expense) for the year ended December 31, 2022 includes a charge of $20 million for an environmental reserve adjustment associated with a non-operating site.
(f)
“Other income (expense), net” includes the following:
?
a pension settlement charge of $58 million in the three months and year ended December 31, 2022 resulting from a greater number of employees retiring in 2022 who elected lump sum benefit payments from our defined benefit pension plans than estimated. We believe that the increase in lump sum elections was driven by the negative impact to lump sum payments in 2023 that will result from higher interest rates in 2022;
?
a net gain of $38 million and $14 million in the three months and year ended December 31, 2022, respectively, related to the early retirement of approximately $442 million and $3.1 billion aggregate principal amount, respectively, of various series of our senior notes;
?
a charge of $193 million in the three months and year ended December 31, 2021 related to the early redemption and retirement of approximately $2.1 billion aggregate principal amount of various series of our senior notes;
?
a gain of $62 million in the year ended December 31, 2021 on the sale of a 24.99 percent membership interest in MVP Terminalling, LLC (MVP), a nonconsolidated joint venture with a subsidiary of Magellan Midstream Partners, L.P.; and
?
a charge of $24 million in the year ended December 31, 2021 representing our portion of the asset impairment loss recognized by Diamond Pipeline LLC, a nonconsolidated joint venture with a subsidiary of Plains All American Pipeline, L.P., resulting from the joint venture’s cancellation of its pipeline extension project.
(g)
Income tax expense includes the following:
?
deferred income tax expense of $51 million in the three months and year ended December 31, 2022 associated with the recognition of a deferred tax liability for foreign withholding tax on the anticipated repatriation of cash held by one of our international subsidiaries that we have deemed will not be permanently reinvested in our operations in that country; and
?
deferred income tax expense of $64 million in the year ended December 31, 2021 related to certain statutory income tax rate changes (primarily an increase in the U.K. rate from 19 percent to 25 percent effective in 2023) that were enacted in 2021 and resulted in the remeasurement of our deferred tax liabilities.
(h)
We use certain financial measures (as noted below) in the earnings release tables and accompanying earnings release that are not defined under GAAP and are considered to be non-GAAP measures.
We have defined these non-GAAP measures and believe they are useful to the external users of our financial statements, including industry analysts, investors, lenders, and rating agencies. We believe these measures are useful to assess our ongoing financial performance because, when reconciled to their most comparable GAAP measures, they provide improved comparability between periods after adjusting for certain items that we believe are not indicative of our core operating performance and that may obscure our underlying business results and trends. These non-GAAP measures should not be considered as alternatives to their most comparable GAAP measures nor should they be considered in isolation or as a substitute for an analysis of our results of operations as reported under GAAP. In addition, these non-GAAP measures may not be comparable to similarly titled measures used by other companies because we may define them differently, which diminishes their utility.
Non-GAAP measures are as follows:
?
Adjusted net income attributable to Valero Energy Corporation stockholders is defined as net income attributable to Valero Energy Corporation stockholders adjusted to reflect the items noted below, along with their related income tax effect. The income tax effect for the adjustments was calculated using a combined federal and state statutory rate for the U.S.-based adjustments of 22.5 percent and a local statutory income tax rate for foreign-based adjustments. We have adjusted for these items because we believe that they are not indicative of our core operating performance and that their adjustment results in an important measure of our ongoing financial performance to better assess our underlying business results and trends. The basis for our belief with respect to each adjustment is provided below.
–
Modification of RVO – The net benefit resulting from the modification of our RVO for 2020 and 2021 that was recognized by us in June 2022 is not associated with the cost of the RVO generated by our operations during the year ended December 31, 2022. See note (a) for additional details.
On the other hand, the net charge resulting from the modification of our RVO for 2021 that was recognized by us in June 2022 is associated with the cost of the RVO generated by our operations throughout 2021. Therefore, the adjustment reflects the portion of the net charge that is associated with the cost of the RVO generated by our operations during the three months and year ended December 31, 2021.
–
Gain on sale of ethanol plant – The gain on the sale of our Jefferson ethanol plant (see note (c)) is not indicative of our ongoing operations.
–
Asset impairment loss – The asset impairment loss attributable to our Lakota ethanol plant (see note (d)) is not indicative of our ongoing operations or our expectations about the profitability of our ethanol business.
–
Environmental reserve adjustment – The environmental reserve adjustment is attributable to a site that was shut down by prior owners and subsequently acquired by us (referred to by us as a non-operating site (see note (e)).
–
Pension settlement charge – The settlement charge is largely the result of the rising interest rate environment in 2022 and the impact of higher interest rates on lump sum pension benefits that affected employee retirement decisions (see note (f)). Therefore, the settlement charge is not indicative of the ongoing costs associated with our pension plans.
–
Loss (gain) on early redemption and retirement of debt – Discounts, premiums, and other expenses recognized in connection with the early redemption and retirement of various series of our senior notes (see note (f)) are not associated with the ongoing costs of our borrowing and financing activities.
–
Foreign withholding tax – The deferred income tax expense associated with the recognition of a deferred tax liability for foreign withholding tax (see note (g)) is the result of a change in the three months and year ended December 31, 2022 in the manner in which cash generated by the company’s business in international jurisdictions is deployed in the U.S.
–
Change in estimated useful life of ethanol plant – The accelerated depreciation recognized as a result of a change in the estimated useful life of our Jefferson ethanol plant (see note (c)) is not indicative of our ongoing operations.
–
Gain on sale of MVP interest – The gain on the sale of a 24.99 percent membership interest in MVP (see note (f)) is not indicative of our ongoing operations.
–
Diamond Pipeline asset impairment loss – The asset impairment loss related to the cancellation of a capital project associated with Diamond Pipeline LLC (see note (f)) is not indicative of our ongoing operations.
–
Income tax expense related to changes in statutory tax rates – The income tax expense related to changes in certain statutory income tax rates (see note (g)) is not indicative of income tax expense associated with the pre-tax results for the year ended December 31, 2021.
?
Adjusted earnings per common share – assuming dilution is defined as adjusted net income attributable to Valero Energy Corporation stockholders divided by the number of weighted-average shares outstanding in the applicable period, assuming dilution.
?
Refining margin is defined as Refining segment operating income (loss) excluding the modification of RVO adjustment (see note (a)), operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, and other operating expenses. We believe Refining margin is an important measure of our Refining segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.
?
Renewable Diesel margin is defined as Renewable Diesel segment operating income excluding operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, and other operating expenses. We believe Renewable Diesel margin is an important measure of our Renewable Diesel segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.
?
Ethanol margin is defined as Ethanol segment operating income excluding operating expenses (excluding depreciation and amortization expense), depreciation and amortization expense, the asset impairment loss (see note (d)), and other operating expenses. We believe Ethanol margin is an important measure of our Ethanol segment’s operating and financial performance as it is the most comparable measure to the industry’s market reference product margins, which are used by industry analysts, investors, and others to evaluate our performance.
?
Adjusted Refining operating income is defined as Refining segment operating income (loss) excluding the modification of RVO adjustment (see note (a)) and other operating expenses. We believe adjusted Refining operating income is an important measure of our Refining segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance.
?
Adjusted Renewable Diesel operating income is defined as Renewable Diesel segment operating income excluding other operating expenses. We believe adjusted Renewable Diesel operating income is an important measure of our Renewable Diesel segment’s operating and financial performance because it excludes an item that is not indicative of that segment’s core operating performance.
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Adjusted Ethanol operating income is defined as Ethanol segment operating income excluding the gain on sale of ethanol plant (see note (c)), the asset impairment loss (see note (d)), the change in estimated useful life of ethanol plant (see note (c)), and other operating expenses. We believe adjusted Ethanol operating income is an important measure of our Ethanol segment’s operating and financial performance because it excludes items that are not indicative of that segment’s core operating performance.
?
Adjusted net cash provided by operating activities is defined as net cash provided by operating activities excluding the items noted below. We believe adjusted net cash provided by operating activities is an important measure of our ongoing financial performance to better assess our ability to generate cash to fund our investing and financing activities. The basis for our belief with respect to each excluded item is provided below.
–
Changes in current assets and current liabilities – Current assets net of current liabilities represents our operating liquidity. We believe that the change in our operating liquidity from period to period does not represent cash generated by our operations that is available to fund our investing and financing activities.
–
DGD’s adjusted net cash provided by operating activities attributable to the other joint venture member’s ownership interest in DGD – We are a 50 percent joint venture member in DGD and we consolidate DGD’s financial statements. Our Renewable Diesel segment includes the operations of DGD and the associated activities to market renewable diesel. Because we consolidate DGD’s financial statements, all of DGD’s net cash provided by operating activities (or operating cash flow) is included in our consolidated net cash provided by operating activities.
DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Nevertheless, DGD’s operating cash flow is effectively attributable to each member and only 50 percent of DGD’s operating cash flow should be attributed to our net cash provided by operating activities. Therefore, we have adjusted our net cash provided by operating activities for the portion of DGD’s operating cash flow attributable to the other joint venture member’s ownership interest because we believe that it more accurately reflects the operating cash flow available to us to fund our investing and financing activities. The adjustment is calculated as follows (in millions):
Three Months Ended
December 31,
Year Ended
December 31,
2022
2021
2022
2021
DGD operating cash flow data
Net cash provided by (used in) operating activities
$
—
$
(199
)
$
661
$
439
Exclude: Changes in current assets and current
liabilities
(283
)
(362
)
(210
)
(323
)
Adjusted net cash provided by operating
activities
283
163
871
762
Other joint venture member’s ownership interest
50
%
50
%
50
%
50
%
DGD’s adjusted net cash provided by operating
activities attributable to the other joint venture
member’s ownership interest in DGD
$
142
$
82
$
436
$
381
?
Capital investments attributable to Valero, including expected amounts for the year ending December 31, 2023, is defined as all capital expenditures, deferred turnaround and catalyst cost expenditures, and investments in nonconsolidated joint ventures presented in our consolidated statements of cash flows, excluding the portion of DGD’s capital investments attributable to the other joint venture member and all of the capital expenditures of VIEs other than DGD.
DGD’s members use DGD’s operating cash flow (excluding changes in its current assets and current liabilities) to fund its capital investments rather than distribute all of that cash to themselves. Because DGD’s operating cash flow is effectively attributable to each member, only 50 percent of DGD’s capital investments should be attributed to our net share of total capital investments. We also exclude the capital expenditures of other VIEs that we consolidate because we do not operate those VIEs. We believe capital investments attributable to Valero, including expected amounts for the year ending December 31, 2023, is an important measure because it more accurately reflects our capital investments.
(i)
The Refining segment regions reflected herein contain the following refineries: U.S. Gulf Coast- Corpus Christi East, Corpus Christi West, Houston, Meraux, Port Arthur, St. Charles, Texas City, and Three Rivers Refineries; U.S. Mid Continent- Ardmore, McKee, and Memphis Refineries; North Atlantic- Pembroke and Quebec City Refineries; and U.S. West Coast- Benicia and Wilmington Refineries.
(j)
Primarily includes petrochemicals, gas oils, No. 6 fuel oil, petroleum coke, sulfur, and asphalt.
(k)
Valero uses certain operating statistics (as noted below) in the earnings release tables and the accompanying earnings release to evaluate performance between comparable periods. Different companies may calculate them in different ways.
All per barrel of throughput, per gallon of sales, and per gallon of production amounts are calculated by dividing the associated dollar amount by the throughput volumes, sales volumes, and production volumes for the period, as applicable.
Throughput volumes, sales volumes, and production volumes are calculated by multiplying throughput volumes per day, sales volumes per day, and production volumes per day (as provided in the accompanying tables), respectively, by the number of days in the applicable period. We use throughput volumes, sales volumes, and production volumes for the Refining segment, Renewable Diesel segment, and Ethanol segment, respectively, due to their general use by others who operate facilities similar to those included in our segments. We believe the use of such volumes results in per unit amounts that are most representative of the product margins generated and the operating costs incurred as a result of our operation of those facilities.
View source version on businesswire.com: https://www.businesswire.com/news/home/20230125005843/en/
Valero Contacts
Investors:
Homer Bhullar, Vice President – Investor Relations and Finance, 210-345-1982
Eric Herbort, Director – Investor Relations, 210-345-3331
Gautam Srivastava, Senior Manager – Investor Relations, 210-345-3992
Media:
Lillian Riojas, Executive Director – Media Relations and Communications, 210-345-5002
Good time to get in, $VLO is -7.38%
https://money.cnn.com/data/hotstocks/
GERS Receives Offer To Restart Litigation Against VLO...
Involving patented oil extraction technology VLO uses at all of their ethanol plants, without a license.
now what?
down today should be up. in the 90's not here.
News; $VLO Refining Stocks Are Rocketing on COVID-19 Vaccine News Today
Shares of leading refining companies Marathon Petroleum (NYSE: MPC) , Phillips 66 (NYSE: PSX) , and Valero (NYSE: VLO) rallied more than 10% by 10:15 a.m. EST on Monday. Fueling this rally was news that a vaccine candidate by pharmaceutical ...
Got this from VLO - Refining Stocks Are Rocketing on COVID-19 Vaccine News Today
I'm very familiar with this stock and believe it will get back to the $60 to $80 range
I'm a recent investor in VLO. I got some shares via put options that I sold last Monday at a strike price of 41 (when I sold the put options Monday, the daily trading range was between 42.24 and 43.49). I'll be switching over and writing covered calls on VLO. I know earnings are out soon. This has been badly beaten down, obviously by the Coronavirus. Anyhow, I'm disappointed that IHUB's VLO board is not being used currently. I thought I'd make my random comment to see if there's anyone else checking the board that has helpful insight. Good luck everyone.
$VLO Valero -2% as Q2 refining, ethanol results slammed
Valero Energy (VLO -2.2%) slides after Q2 earnings match analyst consensus and revenues slip 6% Y/Y, as refining margins fell and higher corn prices cut into profits from ethanol sales.
VLO says Q2 operating income for its refining segment fell to $1B from $1.4B in the year-ago quarter, primarily driven by narrower discounts for medium and heavy sour crude oils relative to Brent crude.
But refinery throughput capacity utilization hit 94% for the quarter and volumes processed averaged 3M bbl/day in Q2, ~70K bbl/day more than in the year-ago quarter.
Higher corn prices cut ethanol profits by 83% to just $7M, compared to $43M in the prior-year quarter, and ethanol production volumes rose 13% Y/Y to 4.5M gal/day, largely due to added production from the three ethanol plants acquired last November.
Q2 operating income at VLO's renewable diesel segment rose to $77M vs. $30M in the year-ago quarter, as renewable diesel sales volumes nearly doubled to 769K gal/day.
VLO continues to expect capex of $2.5B in both 2019 and 2020, including ~40% for growth projects.
$VLO Valero, Darling plan $1.1B upgrade of renewable diesel refinery
Valero Energy (NYSE:VLO) and partner Darling Ingredients (NYSE:DAR) say they will spend a combined $1.1B to expand their joint venture Diamond Green Diesel refinery in Norco, La.
The expansion project will increase renewable diesel production capacity at the site by 400M gal/year to more than 675M gal/year, according to a release from the Louisiana Economic Development Council.
The Diamond Green Diesel facility can convert 2.3B lbs. of recycled material such as animal fats, inedible corn and used cooking oil into 2.75M gal/year of renewable diesel.
Also this week, VLO said it would spend $400M to expand the alkylation unit at its St. Charles Refinery in Louisiana, increasing capacity to convert isobutane and low-modular-weight alkenes into alkylate.
Valero $VLO Ignites Low Pivot With Bottoming Tail Formation
Shares of Valero (VLO) have likely put in an epic bottom. After making a new 52 week low in early trading, Valero staged a strong reversal. This reversal in price put in a major bottoming tail on the daily chart. This same chart signal appeared on Apple Inc (AAPL) just days ago before seeing the stock soar. Valero also has an added benefit of major daily support. Look for Valero to jump back to $90 within weeks.
[img]www.inthemoneystocks.com/images/posts/New%20Gareth/VLO11.28.2018.PNG
[/img]
Gareth Soloway
InTheMoneyStocks
Valero Energy Corp $VLO Strong Short As Chart Signals Sell Alert
Shares of Valero Energy Corporation (VLO) hit a epic trend line resistance point today at $106.00. With oil closing in on $70.00/bbl, investors should expect a sharp pull back in the refiners on a narrowing crack spread. This trend line alerts to the trigger price and members have acted upon it. Per the chart, expect downside to be $98.00 in the near-term and $70.00 in the long-term. Every metric is signaling a top on the stock. Be ready for the downside.
Gareth Soloway
InTheMoneyStocks
$VLO Valero Energy's (NYSE:VLO) U.K. logistics subsidiary agrees to acquire SemGroup's (NYSE:SEMG) SemLogistics Milford Haven fuel storage facility in the U.K. for an undisclosed sum.
VLO says the facility is one of the largest petroleum products storage facility in the U.K., with 8.5M barrels of capacity, and complements its nearby Pembroke refinery and fuel terminals in the U.K. and Ireland.
SEMG says it plans to use the sale proceeds toward its capital raise plan and to pre-fund capital growth projects.
$VLO Valero Energy says Michael Ciskowski will retire as Executive VP and CFO effective May 3, to be succeeded by current Senior VP and Treasurer Donna Titzman.
Ciskowski, who joined the company in 1985, was Executive VP and CFO since 2003 after leading VLO’s Corporate Development department during the late 1990s and early 2000s.
Titzman joined VLO in 1986 and became Senior VP and Treasurer in 2013; she also has served as CFO of Valero Energy Partners (NYSE:VLP) since 2013.
VLO Settlement With GERS Over Oil Extraction Patents
VLO made a mistake when they purchased an unlicensed oil extraction system called the "Advanced Oil System".
http://ethanolproducer.com/articles/8173/valero-to-invest-in-corn-oil-extraction-at-ethanol-plants
The company selling the system got sued for not having a license with GreenShift (GERS), the inventors of oil extraction technology.
Fast forward to today, the companies have reached a massive settlement. Remaining details are being finalized. GERS ( who just hit a 52 week high today) would like to welcome Valero as one of it's largest licensee's for it's patented oil extraction technology.
https://drive.google.com/file/d/11RERZ9OvsBY4qyIlf-7-fyTSTdfdvG-L/view
In what appears to be part of the settlement, the Advanced Oil System has been pulled off the market.
www.icminc.com/products/advanced-oil-separation-system.html
Interestingly, the AOS Also Vanished From Valero's Website...
All references to the Advanced Oil System have been removed.
(Original link to VLO PR about oil extraction system)
https://www.valero.com/Pages/PageNotFoundError.aspx?requestUrl=https://www.valero.com/NewsRoom/Pages/PR_20110916_0.aspx
https://www.valero.com/_layouts/15/osssearchresults.aspx?u=https%3A%2F%2Fwww%2Evalero%2Ecom&k=aos#k=icm%20aos
Good Luck To All!$!$
$VLO Gasoline +0.0M barrels vs. +0.7M consensus, +0.9M last week.
Financial ratios alone are not predictors of future success of a company. That being said, they can provide important perspectives and give you an idea of the path that a company is going on. In the case with Valero, its FCF ratios suggest that the stock can make a continued run along with being able to raise the dividend without problems in the future.
A significant rise in oil prices will possibly bite into Valero's profit margins. However, the dividend situation, as represented by the free cash flow to equity ratio, should reassure investors that Valero is still a safe stock to invest in.
Increased free cash flow gives the company an enhanced ability to distribute dividends to shareholders and increase the payout in the future.
Compared to its Price to Free Cash Flow Ratio, Valero has become undervalued relative to the free cash flow it produces.
Over the past year, Valero has been able to increase its free cash flow considerably which has, and will, increase shareholder value.
Settlement link...
https://drive.google.com/file/d/0B_ch8gAs4lCcS1B3LUc0azZlVTA/view
A settlement over these oil extraction patents could mean VLO will license GERS patents.
http://greenshift-gers.blogspot.com/
Good Luck To All!$!$!$
VLO To License GERS Oil Extraction Patents?
In 2011, VLO purchased the Advanced Oil System (AOS) to extract oil from their plants.
https://www.bizjournals.com/sanantonio/news/2011/09/16/valero-investing-in-extraction-system.html
While Valero was never directly sued by GERS, the company that sold the system to Valero was.
The maker of the AOS was sued by GERS. The parties are now 3 days away from announcing a settlement.
https://drive.google.com/file/d/0B_ch8gAs4lCcS1B3LUc0azZlVTA/view
As of 9/12/17, the Advanced Oil System has been pulled off the market. Could this be settlement related?
www.icminc.com/products/advanced-oil-separation-system.html
The AOS is no longer a product offering.
http://www.icminc.com/products/base-tricanter-system.html
Interestingly, AOS Vanishes From Valero's Website...
All references to the Advanced Oil System have been removed.
http://greenshift-gers.blogspot.com/2011/09/valero-next.html
https://www.valero.com/Pages/PageNotFoundError.aspx?requestUrl=https://www.valero.com/NewsRoom/Pages/PR_20110916_0.aspx
https://www.valero.com/_layouts/15/osssearchresults.aspx?u=https%3A%2F%2Fwww%2Evalero%2Ecom&k=aos#k=icm%20aos
Good Luck To All!$!$!$
Anyone have any color on Valero selling their convenience stores to a competitor? Pretty strong run-up in recent months.
$VLO Valero says Port Arthur fire released 1M pounds of emissions
Valero Energy (VLO +0.6%) says the Tuesday fire at its Port Arthur, Tex,, refinery released nearly 1M lbs. of emissions into the air, mostly from smoke caused by the burning oil.
The fire, which lasted about three hours, originated from an oil storage tank at the refining complex, but the cause remains under investigation; the refinery was shuttered during Hurricane Harvey but had restarted in recent days and was operating at nearly 50% capacity.
The data makes it clear the fire was a huge emissions event, even though the data is preliminary and self reported, says the director of Environment Texas in Austin.
Refineries, petrochemical plants and other industrial operations spewed ~2.6M lbs. of pollutants into the air during Harvey-related shutdowns and accidents in the nearby Houston area.
$VLO Valero underestimated benzene leak at Houston refinery, EPA says
Valero Energy (VLO -1.6%) "significantly underestimated" the amount of cancer-causing benzene and other toxic compounds leaked from its Houston refinery during Hurricane Harvey, the EPA says.
VLO had reported that the leak from a partially collapsed roof of a storage tank released an estimated 6.7 lbs. of benzene and more than 3,350 lbs. of unspecified volatile compounds, but the EPA says VLO now is preparing a new report that will show a substantial increase in emissions from the incident.
The benzene release by the VLO refinery was the strongest concentration of toxic compounds detected by any independent air monitoring throughout the Houston area in Harvey's aftermath.
$VLO Valero signs deal to export refined products to Mexico
Valero Energy (NYSE:VLO) says it signed a long-term deal with Sempra Energy (NYSE:SRE) subsidiary iEnova to export refined fuels to central Mexico; financial terms are not disclosed.
The deal will utilize a new $155M 1.4M-barrel refined product storage facility located in the Gulf of Mexico port of Veracruz, and is expected to start operations by year-end 2018.
IEnova will also build and operate two additional storage terminals near Puebla and Mexico City, which will have 1.3M barrels of combined initial storage capacity.
VLO will have the option to purchase 50% of the equity in the assets once commercial operations begin and regulatory approvals are granted.
$VLO posted strong results for the second quarter of 2017 beating both EPS and revenue estimates. Excluding the impact of an inventory valuation adjustment in the second quarter of 2016, Valero's EPS grew 15% year over year in the second quarter of 2017.
Valero Energy Corp $VLO 5yr DCF valuation implies nice upside before earnings Tuesday:
DCF Analysis
Finally showing some strength here today! Hopefully that was the turn we've been waiting for. Tesoro looking good too.
It isn't up to VLO at the moment....oil thinks different about it.... So down we go!
Nice pop above $50 this morning. Looks like we could be stabilizing here for the slow grind back up.
Once again, monkey hammer selling in the morning and big buying end of day. I think this means retail has been panic selling and institutional is buying.
Well, I did not anticipate the drop of the past couple days. Massive panic overreaction to some headlines. Still holding mine here. Hopefully, we found a bottom today.
Nice big buys at end of day yesterday. Hopefully, setting up a new uptrend for VLO.
Who knows...there is only a 3% short interest, so I guess we're just missing the violent short covering upswings here. Still, nice job recovering here today into close. Still holding all mine.
It would suprise me if 'someone' would spend millions to push VLO just a little bit lower.
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This board is for fundamental and technical discussion about Valero Energy Corporation, VLO.
Valero Energy Corporation (Valero) owns and operates 17 refineries located in the United States, Canada and Aruba that produce conventional gasolines, distillates, jet fuel, asphalt, petrochemicals, lubricants and other refined products. The Company's principal products include conventional and California Air Resources Board (CARB) gasolines, reformulated gasoline blendstock for oxygenate blending (RBOB), ultra-low-sulfur diesel, and oxygenates and other gasoline blendstocks. Valero also produces a substantial slate of middle distillates, jet fuel, and petrochemicals, in addition to lube oils and asphalt. Valero markets branded and unbranded refined products on a wholesale basis in the United States and Canada through a bulk and rack marketing network. It also sells refined products through a network of approximately 5,800 retail and wholesale branded outlets. Effective July 1, 2007, the Company completed the sale of the Lima, Ohio refinery to Husky Energy Inc.
One Valero Way
San Antonio, TX 78249
(210) 345-2000
(210) 370-2103
investorrelations@valero.com
http://www.valero.com/
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